{"text":[[{"start":8.72,"text":"European aerospace group Airbus is discussing the sale of some assets to allay competition concerns over its proposed space merger with Leonardo and Thales."}],[{"start":18.72,"text":"The proposed merger, codenamed Bromo, comes as Europe looks to compete with global rivals such as Elon Musk’s SpaceX amid the fast-developing race for satellite and space technology capabilities. European space sovereignty has become a political issue as the region has fallen behind the US and China in the sector."}],[{"start":38.36,"text":"Airbus has proposed the sale of some of its assets, as the three European companies hold intensive talks with EU antitrust officials to negotiate potential remedies to secure approval for the merger, according to three people familiar with the talks."}],[{"start":52.84,"text":"The discussions have also addressed the geographical balances and long-term benefits of the deal. No final package has been agreed and the focus of the negotiations could change before the transaction is formally submitted to the European Commission later this year."}],[{"start":67.72,"text":"The deal, struck in October last year, would combine activities spanning satellite manufacturing to space systems and services. It has drawn fierce criticism from other European players, including Germany’s OHB and Spain’s Indra Space, who fear the deal could reduce competition in the European satellite market."}],[{"start":87.3,"text":"The joint venture is widely seen as a test case for the bloc’s new merger guidelines, which open the door to bigger corporate mergers to scale up and compete with Chinese and American rivals. It is also seen as a key initiative to tackle Europe’s fragmented defence and space industries as the bloc is re-arming in the wake of Russia’s full-scale invasion of Ukraine and the Trump administration’s mercurial attitude towards Nato."}],[{"start":111.56,"text":"Sash Tusa, analyst at Agency Partners, said the main overlaps between the three companies’ space businesses were in France."}],[{"start":127.44,"text":"Airbus’ “clean room” facilities in Toulouse — sterile spaces where satellites and other space components are built — “overlap completely” with those in Cannes owned by Thales Alenia Space, the joint venture between Thales and Leonardo. However, “divesting it would let a competitor in very easily and probably on the cheap,” Tusa said."}],[{"start":137.94,"text":"In a rare public intervention ahead of a formal antitrust review, European Commission president Ursula von der Leyen earlier this month explicitly referred to the space joint venture, saying “these are the types of industrial champions we need if Europe is to lead in the space economy of tomorrow”."}],[{"start":154.4,"text":"However, EU competition chief Teresa Ribera has warned that the new merger guidelines did not amount to a blank cheque for consolidation. She also said von der Leyen’s comment on the Bromo merger did not mean “we are not going to apply and to enforce our own regulation”."}],[{"start":171.84,"text":"In an interview with the FT on Bromo, European space commissioner Andrius Kubilius said: “The question is perhaps more about: are we in favour of consolidation of defence and space industries? And I can openly say: yes, I am in favour.”"}],[{"start":186.32,"text":"The Commission and Airbus both declined to comment on Bromo’s remedy negotiations."}],[{"start":191.48,"text":"Additional reporting by Sylvia Pfeifer in London and Andy Bounds and Henry Foy in Brussels"}],[{"start":201.76,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1790388481_2322.mp3"}